HF 2566

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; teachers retirement 
  1.3             association; refunding interest charges caused by 
  1.4             administrative errors in certain cases. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [TEACHERS RETIREMENT ASSOCIATION; REFUND OF 
  1.7   CERTAIN INTEREST CHARGES.] 
  1.8      (a) Upon filing a written demand for the interest refund, a 
  1.9   person described in paragraph (b) is entitled to receive a 
  1.10  refund of interest specified in paragraph (c) for the period 
  1.11  during which the teachers retirement association was negligent 
  1.12  in providing accurate information to the eligible person or was 
  1.13  negligent in making timely reports to other Minnesota public 
  1.14  pension plans in which the eligible person has service credit. 
  1.15     (b) An eligible person is a person who: 
  1.16     (1) retired from the teachers retirement association 
  1.17  effective September 1, 1999; 
  1.18     (2) repaid a previously taken refund to the teachers 
  1.19  retirement association on August 23, 1999, restoring 10.979 
  1.20  years of allowable service credit; 
  1.21     (3) began the retirement application and refund repayment 
  1.22  process in February 1999, and was first able to file retirement 
  1.23  forms with the teachers retirement association office on August 
  1.24  27, 1999; and 
  1.25     (4) was charged interest on the repayment of refund for the 
  2.1   period during which the teachers retirement association failed 
  2.2   to provide requested information and failed to contact the 
  2.3   public employees retirement association and the St. Paul 
  2.4   teachers retirement fund association. 
  2.5      (c) The refund interest rate is 0.708 percent per month, 
  2.6   compounded monthly, on the refund repayment amount that would 
  2.7   have been payable on April 15, 1999, applied to the period April 
  2.8   15, 1999, to August 23, 1999, and 8.5 percent per year, 
  2.9   compounded annually, on that initially determined amount from 
  2.10  August 23, 1999, until the interest repayment is made. 
  2.11     (d) The interest refund is payable on the first day of the 
  2.12  month next following the date on which the eligible person files 
  2.13  the written demand under paragraph (a). 
  2.14     Sec. 2.  [EFFECTIVE DATE.] 
  2.15     Section 1 is effective on the day following final enactment.